We don’t know about you, but we’re looking forward to some much needed down time this Easter long weekend. With interest rates sitting so low and speculation mounting that the cash rate could fall again in the coming months, the Easter long weekend may be the perfect opportunity to consider whether your home loan is working as best as it can for you.
Or perhaps, are you working as best you can on your home loan?
As we enjoy some of the lowest interest rates in our lifetime, unfortunately many don’t seem to be thinking about how they can make the most out of the current market. So with a little extra time up your sleeves over Easter, why not think about paying off your mortgage sooner with these three easy techniques:
1. Refinance your mortgage:
With Australia’s lenders competing aggressively for business through sharp home loan pricing, you could find there’s another loan that is not only better suited to your needs, but boasts a much lower interest rate, saving you thousands of dollars in interest over the life of your loan.
2. Continue to make higher repayments:
Since the beginning of the year, most lenders have shaved at least 0.25% from their suite of home loan products. So in most cases, you’ve probably found that your mortgage repayments have dropped. Instead of paying off the new, lower repayment, you could aim to continue paying off the mortgage as though the rates never dropped. If you continue to make higher mortgage repayments, you’ll find yourself paying off that home loan much faster. Every little bit that you overpay on your repayments, shaves time off the life of your loan.
3. Make the most of an offset account:
Those who make the most of their offset account and use it as effectively as possible are able to significantly reduce the amount of interest they have to pay on their home loan. If you have recently received a pay rise or are expecting to receive a good amount of tax back at the end of the financial year, make sure you feed it all into your offset account as this will help you to offset the amount of interest payable on your home loan.
So in between the Easter egg hunts and chocolate gorging, spare some time this long weekend for your finances. It might be worth speaking to us, your local Mortgage Choice in Robina to see whether there are things you can do to pay off your mortgage faster.
As your Gold Coast Mortgage Broker and Home Loan specialist, our office is located in Robina servicing the Robina area and other suburbs including Varsity Lakes, Burleigh Heads, Burleigh Waters, Mermaid Beach, Mermaid Waters, Miami, Nobby Beach, Bonogin, Mudgeeraba, Reedy Creek, Tallai, Worongary and surrounding areas on the Gold Coast.